Real Estate
Transfer: Owner-Occupied Property → Investment Property
Reclassifying a building the company previously used itself, now leased out to a third party.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investment Property (at Fair Value) | Asset (+) | 600,000.00 | - |
| Building (PPE at Cost) | Asset (-) | - | 500,000.00 |
| Accumulated Depreciation | Contra-Asset (-) | 80,000.00 | - |
| Revaluation Surplus (OCI) | Equity (+) | - | 180,000.00 |
💡 Accountant's Note
When transferring from PPE to Investment Property at fair value, the gain is initially recognized in OCI (not P&L), consistent with PPE revaluation rules.
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